In light of the Trump administration’s growing support for cryptocurrency, some investors are beginning to question the future of gold as the go-to hedge asset. André Dragosch, the European head of research at Bitwise Asset Management, believes that the decision between gold and bitcoin is not as straightforward as it may seem. In a recent post on X, Dragosch outlined a rule-of-thumb: gold remains the optimal protection against stock market losses, while bitcoin is increasingly becoming a counterweight to bond market stress.
Gold has historically been the preferred hedge asset during equity market downturns. Investors tend to flock to gold during times of market stress, as evidenced by its near-zero correlation with the S&P 500. For instance, during the 2022 bear market, gold prices rose by approximately 5% while the S&P 500 plummeted nearly 20%. This trend solidifies gold’s status as a classic “safe haven” asset.
On the other hand, bitcoin has struggled during equity market panics but has shown a more intriguing relationship with U.S. Treasuries. Studies have indicated that bitcoin has a low or slightly negative correlation with government bonds. Consequently, when bond prices decline and yields rise, bitcoin has sometimes outperformed gold.
Dragosch emphasizes that investors do not need to choose between gold and bitcoin. Instead, these assets serve different purposes in a portfolio. Gold remains the superior hedge during stock market volatility, while bitcoin may provide stability when bond markets are under pressure from rising rates or fiscal concerns.
The performance of gold and bitcoin in 2025 further supports Dragosch’s thesis. Gold has surged by over 30% year-to-date, reflecting increased demand during periods of equity market turbulence. In comparison, bitcoin has gained approximately 16.46% this year, a commendable performance considering the decline in 10-year U.S. Treasury yields.
While Dragosch’s rule-of-thumb is backed by data, it is essential to acknowledge that correlations are not static. Bitcoin’s correlation with equities has strengthened in 2025 due to significant inflows into spot ETFs, making it trade more like a mainstream risk asset.
In conclusion, Trump’s pro-crypto stance may prompt some investors to consider abandoning gold in favor of bitcoin. However, Dragosch advises against this drastic shift, as both assets serve unique roles in hedging against different risks. By holding a combination of gold and bitcoin, investors can enhance diversification and optimize risk-adjusted returns.
With the rise of social media and digital technology, the way we communicate and interact with one another has drastically changed. People are now able to connect with others from all over the world with just the click of a button. This has opened up a whole new world of possibilities for networking, learning, and sharing information.
One of the most popular social media platforms that has revolutionized the way we communicate is Facebook. With over 2.8 billion active users, Facebook has become a global phenomenon that has changed the way we connect with friends, family, and even strangers. From sharing photos and videos to joining groups and events, Facebook has become a one-stop-shop for all things social.
But with great power comes great responsibility. As with any form of communication, there are risks and dangers associated with using social media. From cyberbullying to privacy concerns, it is important for users to be aware of the potential pitfalls of sharing information online.
One of the biggest concerns with social media is the issue of privacy. With so much personal information being shared online, there is always a risk of this information falling into the wrong hands. This can lead to identity theft, fraud, and other malicious activities. It is important for users to be mindful of what they share online and to adjust their privacy settings accordingly.
Another concern with social media is the issue of cyberbullying. With the anonymity that the internet provides, many people feel emboldened to say things online that they would never say in person. This can lead to hurtful and damaging behavior that can have serious consequences for the victim. It is important for users to report any instances of cyberbullying and to seek help if they are being targeted.
Despite these risks, social media has also brought about many positive changes in the way we communicate. From organizing events to raising awareness for important causes, social media has become a powerful tool for social change. It has allowed us to connect with others in ways that were never before possible and has opened up new opportunities for collaboration and innovation.
In conclusion, social media has revolutionized the way we communicate and interact with one another. While there are risks and dangers associated with using social media, it is important for users to be mindful of these and to take steps to protect themselves online. By using social media responsibly, we can harness its power for good and continue to connect with others in meaningful ways.